Wilson Lim @limwilson: "$3690.HK (Meituan) Position Closed: Thesis..."

United Kingdom

$3690.HK (Meituan) Position Closed: Thesis Violation. Today I have exited our entire position in Meituan. This was a difficult decision, as we are realizing a loss, but my job is to protect capital, not hope for a turnaround when the facts change. Why I Sold (The Diagnosis): My original thesis for Meituan was based on three pillars: High Moat: Unrivaled dominance in delivery. Efficiency: Lowest cost of delivery per order. Growth: Expansion into the travel ecosystem. What Changed (The Pathology): The landscape has shifted fundamentally in 2024-2025. Moat Erosion: Competitors like Douyin (ByteDance) are aggressively burning cash to steal market share in the "in-store" and local service segments. The barrier to entry was lower than we anticipated. Capital Destruction: To defend its share, Meituan is being forced into a new cash-burning war. This destroys margins and delays the profitability roadmap we originally bet on. Thesis Broken: I invested in a "Compounder," not a "Cash Burner." When the fundamental thesis breaks, we sell. We do not hold and hope. Next Steps: This capital has been moved to our Standby Fund. I am currently eyeing opportunities in sectors with better defensive moats (specifically US Tech/Healthcare) and will deploy this capital when the technical setup is right. Risk management is our #1 priority. $03690.HK (Meituan Class B) $0700.HK (Tencent) $BABA (Alibaba-ADR) $9988.HK (Alibaba Group Holding Ltd (Hong Kong))

Not investment advice. The author may have financial interests in the mentioned instruments.